Article

India's finance minister announced the launch of ISM 2.0 to enhance domestic capabilities in the semiconductor equipment market, projected to reach $400 billion by 2030, as per IESA and SEMI India. The initiative comes as global supply chains face bottlenecks due to rising AI workloads, increasing demand for high bandwidth memory and advanced DRAM.

Experts suggest this offers India an opportunity to develop an ecosystem by attracting global OEMs to source from Indian MSMEs and fostering domestic companies. The current demand for wafer fabs is unprecedented, with equipment suppliers booked for the next 2-3 years.

Analysts emphasize the importance of incentives for global players to source from India instead of China. India aims to capture 10% of the global market by 2032 while addressing infrastructure challenges. The domestic equipment market could reach $5 billion by 2030, underscoring the need for a robust supply chain to support advanced fabs.